Virtual reality (VR) technology, rooted in 19th-century innovations, creates immersive experiences by simulating real-world environments. Key developments include Charles Wheatstone's stereoscopic photo viewer, Morton Heilig's Sensorama and head-mounted displays, and the coining of the term 'virtual reality' by Jaron Lanier in 1987. Today, with advancements in technology, major companies are further refining VR, marking 2016 as a pivotal year for its evolution.